Ray Dalio: You’re Going To Feel ‘Pretty Stupid’ For Holding Cash

And you too can have “principles” for only $18.95 or $14.99, depending on whether you like your “principles” in hardcover or digital format.

Of course you only have to pay if you want hundreds of pages of principles. If you just want some Cliffs Notes-style principles, you can check out Ray’s LinkedIn missives or better yet, just check with your favorite mainstream financial news outlet every once in a while to see if he’s been preaching his principles on-air.

On Tuesday, Dalio showed up on CNBC whose band of bubble-blowing bloviators are reporting live from Davos, donning the traditional “they won’t let us inside” goose down.

Apparently, one of Ray’s new principles is that holding cash makes you a fucking moron. “We are in this Goldilocks period right now. Inflation isn’t a problem. Growth is good, everything is pretty good with a big jolt of stimulation coming from changes in tax laws,” Ray said, taking some time away from dining on expensive hotdogs to chat with the little people against a backdrop of snow-laden conifers. Here’s the clip:

There you go. This sucker’s getting ready to “blow” and if you’re holding cash, you’re going to “feel pretty stupid.”

So I guess this means Ray is fully invested and he would really appreciate it if you went ahead and followed his lead.

Let’s hope the ongoing bond crash doesn’t end up causing any problems for Ray’s risk parity portfolio which, according to himself, doesn’t pose a systemic risk.

About a month ago I told you that my impression of Dalio as an investor (as opposed to a business man) is “Meh.” I stand by it. But I do think the final leg of this bull is like the Nasdaq from Jan-Feb 2000. We can run here…so Dalio is short term right. Remember March 2000? That’s how this is setting up. I’m fine riding the trend. But becoming a buy and hold investor now is problematic. Lot’s of individual investors are piling in now after sitting out a long time….that’s how it always goes. Musical chairs…..don’t be the last man standing when the music stops.

Mostly I have a lot of respect for Ray Dalio and enjoy hearing what he has to say. But, “we’ve had a beautiful deleveraging”? WTF?!!! Which charts on leverage is he looking at?!! I don’t know; I just know they aren’t the same ones I’m looking at!!